According to the latest cash rate futures, the market is split on whether the Reserve Bank will cut the cash rate to zero at its April meeting.
Whilst I'm not overly convinced the central bank will make another move, it certainly is a distinct possibility.
In light of this and the recent share market weakness, if you haven't done so already, I think now would be a good time to look at the many top dividend shares on offer on the Australian share market.
Two that I would buy before the cash rate drops to zero are listed below:
Commonwealth Bank of Australia (ASX: CBA)
Although this banking giant's shares rebounded almost 12% higher on Monday, I don't believe it is too late to invest. At the current level I still feel that the shares of Australia's largest bank are undervalued, even after factoring a likely decline in earnings and a probable dividend cut.
And while some of its big four rivals may be better value, I would rather pay a little bit more for quality. Especially given how its shares still offer a very generous dividend yield despite this. I estimate that its shares currently provide a forward fully franked ~6% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
I think that this telco giant would be a great option for income investors. This is due to its improving outlook, T22 strategy, and defensive qualities. The latter has been on show this month with Telstra being one of only a handful of companies reaffirming guidance for FY 2020.
In light of this, I believe the company is well-placed to deliver enough free cash flow to maintain its 16 cents per share fully franked dividend this year. This works out to be a generous fully franked 4.9% dividend yield.
